• Matthew Rotolo• Itzhak Klein• Agnes Belka

BUSINESS MODEL

• Bike with us for free • Registration fees $2• Overuse fees

• Our revenue is generated from sponsors

BIKE WITH US VS. CITI BIKELOCATIONS

SEGMENTATION

• USERS (RIDERS)• According to the 2010 Census in Upper Manhattan there are 525,649 between the

ages of 20 and 40• Students of City College, John Jay, Hunter, Columbia and Fordham

• SPONSORS• Every company that wants to have its name on the streets of Upper

NYC, Maximum exposure for drivers and pedestrians

VALUE PROPOSITION

Why biking with us?• Save on average $112 X 12 months = $1,344 yearly• General health benefits

Why advertising with us? • Advertisement exposure• 10 ads X 4 weeks = 3,500,000 viewers• $3,000 = 3,500,000 viewers

KEY PARTNERS: SPONSORS

• Partner with sponsors insurance companies, travel agencies and health food stores

• Political support from John Lhota, former chairman of MTA

KEY PARTNERS: SUPPLIERS• Sunlight Bicycles• World Dynamics International Development Limited

KEY ACTIVITIES

• Social Media is cheap and effective

• Advertising ourselves on the bikes

• Promotional events and contests

• Sales personnel

KEY RESOURCES

• Investment money

• Political influence

CUSTOMER RELATIONSHIPS

•At Bike With Us our customer relationships will be based upon the quality of service that we provide.

• It will be up to us to place a high level of importance on reliability in order to continually attract members as well as sponsors.

•As far as sponsors are concerned, we envision establishing long-term relationships based upon the level of exposure that we provide as well as the returns seen by said sponsors after their initial ad purchases.

Cost Structure

• Start-up costs - deal with the initial capital needed in order to get the company off the ground with its planned 1,500 bikes and 150 stations located in designated areas around Uptown Manhattan and Harlem. Also involves the pre-launch marketing that will be done.

• Operating costs - deal with the day-to day costs that will come with running the company after the initial stage is complete and will better forecast what it will cost to run the company on a yearly basis. Includes

Cost Structure

• Start-up costs

• Bicycles (1,500) – $58,500 ($39 each)

• Stations (150) - $750,000 ($5,000 each)

• Maintenance Vans (2) - $55,000

• Maintenance Equipment - $2,000

• Marketing/Promotions - $10,000

• Website setup - $25,000

Cost Structure

• Operating costs

• Rent - $3,500/month

• Insurance - $5,000/month

• Website upkeep - $7,000/month

• Bike maintenance - $4,500/month

• Employee Salaries - $10,000/month

Revenue Streams - Competition

Citibike (NYC)

• Annual Membership - $95• Overtime Fees

• 45 - 75 min - $2.50• 75 - 105 min - $9.00• Every additional 30 min - $9.00

• 24 hour pass - $9.95• 7 day pass - $25• Overtime Fees

• 30 - 60 min - $4.00• 60 - 90 min - $13.00• Every additional 30 min - $12.00

Capital Bikeshare (D.C.)

• 24 hour - $7.00• 3-day - $15.00• Overtime Fees

• 30 - 60 min - $2.00• 60 - 90 min - $6.00• 90 min + - $14.00 +

• Daily Key - $10.00 + $7.00/day• Monthly - $25.00• Annual - $75.00• Annual with Monthly

Installments - $84.00 • Overtime Fees

• 30 - 60 min - $1.50• 60 - 90 min - $4.50• 90 min + - $10.50 +

Revenue Streams – Bike With Us

• One time sign-up membership – $2.00

• Overtime Fees

• 30 - 60 min - $8.00

• 60 - 90 min - $15.00

• Every additional 30 min - $20.00

Revenue Streams – Bike With Us

Advertising Revenues

• Ad off the back - $350 per ad per 4 week period.

• Ad in frame - $200 per ad per 4 week period

• Package deal - $450 per ad per 4 week period

Minimum Purchase – 10 bike advertisements

ADVERTISMENTS

Advertisements will be the main source of revenue which will allow members of Bike With Us to ride for free

Revenue Streams – Bike With Us

Sponsor - a – Station

• Price - $1000 per station per 4 week period

• Provides exposure to large number of potential customers as well as establishes goodwill for sponsoring company

• Bike With Us will work with nearest high schools in order to provide community service opportunities to students. Students will be asked to clean and clear the station of litter and graffiti, as well as provide snow removal during the winter months.

Revenue Streams – The Numbers

• Advertising Revenues

• Assumptions

• 60% sold at any given time

• 50% split between single ad and package deals

• Yearly Revenues

• Ad off back = $1,890,000

• Ad between frame = $1,080,000

• Package deal = $2,430,000

• Adopt-a-station = $1,080,000

• Registration fees = TBD

• Overtime fees = TBD